Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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142. To ask the Minister for Finance his plans to facilitate or remove the obligation of preparing returns to the Revenue Commissioners for the elderly, such as those over 80 years of age; and if he will make a statement on the matter. [5625/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a taxpayer's obligation to prepare and submit a tax return is dependent on his or her circumstances.

In general, taxpayers who are "chargeable persons" under the self-assessment system (for example, individuals who carry on a trade, or have non-PAYE income such as investment income, or who are proprietary directors) are required, regardless of age, to submit a tax return to Revenue by 31 October of the year following the tax year in question (or by mid-November, if paying and filing through the Revenue On-Line Service).

By contrast, taxpayers whose income consists solely of income taxed under the PAYE system (other than certain directors or their jointly assessed spouse or civil partner) are not chargeable persons and, accordingly, are not obliged to file an annual tax return unless requested exceptionally to do so by Revenue.

A taxpayer who has income taxed under the PAYE system (such as a private pension or salary) and who also has taxable non-PAYE income, may, where such income does not exceed €5,000 for 2016 (or €3,174 for prior years), request Revenue to reduce their annual PAYE tax credits and rate band entitlements, so that the tax on their non-PAYE income is deducted by their pension provider or employer. Any such taxpayer is not considered a chargeable person and has no obligation to file an annual tax return. Revenue may, however, exceptionally request a tax return from such taxpayers. 

Where a taxpayer is obliged to complete a tax return, or has been requested to complete a tax return by Revenue, they have the option to file the return online. Chargeable persons can file an electronic Form 11 through the Revenue On-Line Service and taxpayers who are taxed under the PAYE system can file an eForm 12 through the myAccount service. The electronic tax returns are simpler to complete than the paper versions and are pre-populated with certain information Revenue has in relation to the taxpayer to help them complete their return. This includes pay received and tax/USC deducted details from employers or pension providers and information from the Department of Social Protection such as pension details. Support is also provided for customers who are experiencing technical computer difficulties in accessing or navigating the electronic tax return form via a dedicated helpline at 1890 201106.

I am also informed that a simplified, four-page paper Form 12S is also available for taxpayers who are taxed under the PAYE system. In addition, any taxpayer who is obliged to complete a tax return, or has been requested to do so by Revenue, can also contact their local Revenue office if they have any difficulties in completing the return. Contact details are available from the telephone directory or online at .

While I acknowledge that some individuals may suffer a decline in the level of their income as they get older, it is the case that the income of many such individuals remains at a level that is taxable. The obligation to make tax returns is determined by a person's economic circumstances and I have no plans to remove this obligation from persons in receipt of taxable income on the basis of an age threshold.

Brendan Griffin (Kerry, Fine Gael)
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144. To ask the Minister for Finance if he will review the rate of capital acquisitions tax for persons inheriting properties; and if he will make a statement on the matter. [5702/16]

Michael Noonan (Limerick City, Fine Gael)
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Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance.

CAT is charged at 33% to the beneficiary on amounts received by gift or inheritance, beyond certain lifetime tax-free amounts determined by the relationship between the beneficiary and the person making the gift or the inheritance. The rate is the same regardless of the nature of the gift or inheritance (i.e. cash or different types of property), although certain reliefs and exemptions can apply, notably for transfers of farms and businesses and of the residential property in which the beneficiary lives, subject to certain conditions.

As with all other areas of tax, the details of CAT, including the rate charged, are kept under review as part of the annual Budget and Finance Bill process.